Personally I wouldnt rely on Paypal to give you your money back, they will find any way possible not to give you your money back! (from a costly experience!)
As everyone has said... I wouldnt report it to Ebay until you get as much information as you can possibly get! Once you have that info, then report them as it might also help and at least they will not sell them onto some other poor collector!
Good Luck!
Andrew